South Korean steel giant POSCO has announced that it has laid the groundwork for securing a sales channel for automobile steel sheets in China, with the start of construction on September 10 on a new steel service center, named POSCO-CLPC, at the EU Economic Development Zone in the northeastern Chinese industrial center of Shenyang.
POSCO-CLPC is POSCO's sixteenth steel service center in China. With a planned annual processing capacity of 170,000 mt of steel, the steel service center is scheduled to be completed by June next year.
Shenyang is the center of the Chinese auto market, and local factories of major global automakers, such as General Motors, BMW, and Volkswagen, are located there.
Car production in this area comprises about 25 percent of the total car output of China. POSCO-CLPC will provide custom-made steel sheets to actively engage in car sheet sales in northeast China, and it hopes to establish itself as a base for the auto steel sheet market in China.